1847 Goedeker Announces Closing of $205 Million Public Offering, $70 Million Debt Financing & Acquisition of Appliances Conne...
June 02 2021 - 5:01PM
Business Wire
1847 Goedeker Inc. (NYSE American: GOED, GOED WS)
(“Goedekers” or the “Company”), a one-stop e-commerce
destination for appliances and furniture, today announced the
closing of its $205 million underwritten public offering, $70
million debt financing and simultaneous closing of its acquisition
of Appliances Connection, creating the largest pure-play online
retailer of household appliances in the US.
The underwritten public offering comprised 91,111,111 units,
each unit consisting of one share of common stock and one warrant
to purchase one share of common stock. Each unit was sold to the
public at a price of $2.25. The gross proceeds to the Company from
the offering were approximately $205 million before deducting
underwriting discounts, commissions and other offering expenses.
This includes the exercise by the underwriters of their
over-allotment option to purchase up to an additional 2,000,000
warrants. The warrants included in the units are exercisable
immediately, have an exercise price of $2.25 per share and expire
five years from the date of issuance. The warrants began trading on
the NYSE American on May 28, 2021 under the ticker symbol “GOED
WS”. The Company has granted the underwriters a 30-day option to
purchase up to 2,000,000 additional shares of common stock to cover
over-allotments, if any.
The Company utilized the net proceeds from this offering to fund
a portion of the purchase price for the acquisition of Appliances
Connection and plans to use the remaining net proceeds for working
capital and general corporate purposes. The completion of the
Appliances Connection acquisition accelerates Goedekers’ long-term
vision of building a billion-dollar enterprise that changes the way
Americans shop for appliances.
The Company also announced the closing of a $70 million senior
secured credit facility with a leading regional commercial bank,
consisting of a simultaneous $60 million term loan used to
partially fund the cash portion of the purchase price for the
acquisition of Appliances Connection and a $10 million revolving
loan for future working capital needs.
ThinkEquity, a division of Fordham Financial Management, Inc.,
acted as sole book-running manager for the public offering and sole
placement agent for the debt financing.
A registration statement on Form S-1 (File No. 333-255709)
relating to the units was filed with the Securities and Exchange
Commission (“SEC”) and became effective on May 27, 2021. This
offering was made only by means of a prospectus. Copies of the
final prospectus may be obtained from ThinkEquity, a division of
Fordham Financial Management, Inc., 17 State Street, 22nd Floor,
New York, New York 10004, by telephone at (877) 436-3673, by email
at prospectus@think-equity.com. Investors may also obtain these
documents at no cost by visiting the SEC’s website at
http://www.sec.gov.
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy, nor shall there be any sale of
these securities in any state or jurisdiction in which such an
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such state or
jurisdiction.
About 1847 Goedeker Inc.
1847 Goedeker Inc. is an industry leading e-commerce destination
for appliances, furniture, and home goods. Since its founding in
1951, Goedekers has transformed from a local brick and mortar
operation serving the St. Louis metro area to a respected
nationwide omnichannel retailer that offers one-stop shopping for
national and global brands. While the Company maintains its
St. Louis showroom, over 95% of sales are placed through its
website (www.Goedekers.com). Goedeker’s provides visitors an easy
to navigate shopping experience and offers more than 141,000 items
organized by category and product features. Learn more at
www.Goedekers.com.
About Appliances Connection
Founded in 2000, Appliances Connection is one of the leading
e-commerce retailers of household appliances with a 200,000 square
foot warehouse in Hamilton, NJ and a 23,000 square foot showroom in
Brooklyn, New York. Appliances Connection carries many household
name brands, including Bosch, Cafe, Frigidaire Pro, Whirlpool, LG,
and Samsung, and also carries many major luxury appliance brands
such as Miele, Thermador, La Cornue, Dacor, Ilve, Wolf, Jenn-Air,
Viking among others. Appliance Connection provides appliance
installation services and appliance removal services. In addition
to selling appliances, it also sells furniture, fitness equipment,
plumbing fixtures, televisions, outdoor appliances, and patio
furniture, as well as commercial appliances for builder and
business clients.
Forward Looking Statements
This press release contains “forward-looking statements” that
are subject to substantial risks and uncertainties. All statements,
other than statements of historical fact, contained in this press
release are forward-looking statements. Forward-looking statements
contained in this press release may be identified by the use of
words such as “anticipate,” “believe,” “contemplate,” “could,”
“estimate,” “expect,” “intend,” “seek,” “may,” “might,” “plan,”
“potential,” “predict,” “project,” “target,” “aim,” “should,”
"will” “would,” or the negative of these words or other similar
expressions, although not all forward-looking statements contain
these words. Forward-looking statements are based on the Company’s
current expectations and are subject to inherent uncertainties,
risks and assumptions that are difficult to predict. Further,
certain forward-looking statements are based on assumptions as to
future events that may not prove to be accurate. These and other
risks and uncertainties are described more fully in the section
titled “Risk Factors” in the final prospectus related to the public
offering filed with the Securities and Exchange Commission and
other reports filed with the Securities and Exchange Commission
thereafter. Forward-looking statements contained in this
announcement are made as of this date, and the Company undertakes
no duty to update such information except as required under
applicable law.
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Dave Gentry, CEO RedChip Companies Office: 1.800.RED.CHIP
(733.2447) Cell: 407.491.4498 dave@redchip.com
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